The best debt consolidation loans of September 2026

If you have mounting credit card bills, a debt consolidation loan can streamline multiple payments into a single monthly bill at a lower interest rate. Many lenders will even send funds directly to your creditors.

CNBC Select has chosen the best debt consolidation loans based on rates, fees, credit score requirements, repayment options and other criteria. For more on how we made our picks, read our methodology.

Who's this for? If you need money quickly, LightStream can approve and fund loans the same day you apply, if you sign by 2:30 p.m. ET.

Standout benefits: Borrowers can choose their funding date and repayment terms. LightStream's Rate Beat Program means it can beat a competitor's offer on an unsecured loan if you meet eligiblity requirements.

Direct pay: No, LightStream deposits funds in borrower's account for them to disburse.

Who's this for? Upgrade debt consolidation loans are available in terms ranging from 24 to 84 months, giving borrowers the flexibility to choose a repayment timeline that works for their budget.

Standout benefits: Funds are available one business day after you accept the loan offer. Upgrade allows borrowers to secure their loans with a vehicle.

Direct pay: Yes, with its Debt Payoff feature, Upgrade sends funds directly to eligible creditors. Borrowers may might be eligible for a discount for using Debt Payoff

Who's this for? If you need help tackling large debts, Happy Money approves debt consolidation loans for up to $50,000.

Standout benefits: Happy Money's straightforward application process lets you choose your monthly payment and payoff date. Borrowers can choose repayment terms of up to 84 months.

Direct pay: Yes, Happy Money sends loan funds directly to creditors.

Who's this for? If you don't make a payment on time, many lenders will tack on a late fee that can range from a flat charge of $25 to $50, or 3% to 5% of the amount due. SoFi doesn't charge late fees. There's also no origination fee and you can make extra payments or pay off your loan early without penalty.

Standout benefits: SoFi allows borrowers to consolidate and refinance up to $100,000 in federal or private student loans. SoFi membership comes with referral bonuses, rate discounts, financial planning tools and an unemployment protection program that allows you to temporarily modify your loan payments.

Direct pay: The Direct Pay feature lets SoFi pay off eligible credit cards and personal loans directly.

Who's this for? Universal Credit approves debt consolidation loans for as little as $1,000, making it a good option if you don't want to borrow more than you need.

Standout benefits: It accepts FICO Scores as low as 560, and can fund eligible loans as quickly as the next business day after approval.

Direct pay: Universal Credit will pay your creditors directly.

Who's this for? Prosper allows you to apply with a co-borrower, which can improve your odds of approval and help you qualify for better terms.

Standout benefits: Borrowers choose from terms of 24 to 72 months and funds can be available as early as the next business day.

Direct pay: No, funds are deposited directly in borrowers' accounts.

Who's this for? Best Egg allows borrowers to secure their loan with vehicle equity or permanenet home fixtures, like built-in cabinets or bathroom vanities. According to the lender, secured loans generally have APRs that are about 20% lower than standard unsecured loans.

Standout benefits: Best Egg approves borrowers with fair credit for unsecured loans. Borrowers can receive funds within one business day.

Direct pay: Loan funds go straight to eligible creditors.

Who's this for? Achieve approves debt consolidation loans for borrowers with a FICO score of 560, lower than many competitors.

Standout benefits: Achieve approves secured loans with vehicle titles and permanent home fixtures as collateral. Customers with rewards checking accounts may qualify for a relationship discount.

Direct pay: Yes, and using direct pay to creditors can qualify you for an interest rate discount.

Who's this for? If you have a thin credit file. Upstart's AI-powered underwriting model looks at hundreds of data points beyond your credit score, including education, work history, income and savings patterns.

Standout benefits: Borrowers can be approved for anywhere from $1,000 to $75,000, and funds may be available as soon as the next business day.

Direct pay: No, funds are deposited into your bank account and you pay your creditors yourself.

A debt consolidation loans is an installment loan intended to pay off credit card bills or other high-interest debts with lower, fixed rate financing.

Instead of making multiple payments to different creditors, you make one monthly payment to the consolidation lender, ideally at a lower interest rate or with a longer repayment term.

The main potential benefits are simplifying your payments and reducing the amount of interest you pay. Some lenders will send the funds directly to your creditors, and may even offer a lower rate if you choose this direct pay option.

Keep in mind that consolidating debt doesn't eliminate it — you still need to repay the loan. And many lenders charge origination fees of up to 10%, which are deducted from the amoun you receive.

Before signing up for a debt consolidation loan, make sure the cost of borrowing is low enough that you're still coming out ahead.

Applying for a debt consolidation loan is similar to applying for any other kind of personal loans.You'll want to compare lenders requirements and offerings to make sure you have the best offer..

1. Check your credit

Your credit score and credit history will impact your eligibility and the interest rate you receive. If you have poor credit, look at your credit report for errors and, if possible, places you can improve your credi before applying.

2. Determine how much you need to borrow

Add up the balances you want to consolidate, including any applicable fees or other costs. Avoid borrowing more than you need, since you'll have to repay the full loan amount plus interest. Lenders usually have loan minimums and maximums, so knowing how much you need will filter out some options.

3. Compare lenders

Look for lenders with credit score and debt-to-income requirements you can meet, while also comparing their loan amounts, rates, fees, and funding speed. When possible, prequalifying can give you a good indication of potential terms without affecting your credit score.

4. Gather your documentation

It varies by lender, but most will want proof of you income, employment, residency status and existing debts. Self-employed borrowers may need additional documentation.

• Prood of identity: A valid driver's license, passport or other photo ID.
• Proof of address: A utility bill, lease or bank statement may be accepted.
• Proof of income: Recent pay stubs, W-2s, tax returns or bank statements.
• Proof of employment: An employment verification letter or contact information
• Details about existing debts: Existing monthly debt statements, including credit card bills and other
• Bank account information: To receive loan proceeds and set up automatic payments.

If you are having the lender pay your creditors directly, you'll also need to share the creditor names, account numbers and outstanding balances.

5. Apply for the loan

All of the lenders on this list allow you to apply with an online application. That will trigger a hard credit inquiry, which will lower your credit score temporarily, so only apply when you're clear this is the lender you want to work with. and prepayment penalties.

If you're approved, you'll review the loan agreement, which should include details about your interest rate and fees, monthly payment, repayment term and when your first payment is due. Read the agreement carefully before accepting the loan.

6.Receive the funds

Depending on the lender, the loan proceeds may be deposited into your bank account for you to use to pay your creditors, or the lender may pay them directly. If it's the latter, make sure they have the appprorite names, addresses and account names.

A debt consolidation loan might be hard to secure if you have credit issues. Some alternatives to debt consolidation include:

Negotiating with your lenders: Don't be afraid to reach out to your creditors about lowering your interest rate, developing a payment plan or forming other arrangements to make your loan more manageable.

Cash-out refinancing: If you have a home loan, you may be able to take out a cash-out refinancing loan with a lender like Chase Bank or Rocket Mortgage. This replaces your existing mortgage with a larger loan and allows you to use the difference to consolidate your debt.

Credit counseling: Credit counseling agencies like like Money Management International and Apprisen can work with your creditors to create a debt management plan, enabling you to repay your balance with reduced interest rates, fees and reduced monthly payments.

Debt relief company: Debt relief companies like Freedom Debt Relief and Accredited Debt Relief can negotiate with your creditors to accept less than the full balance owed. You typically need at least $7,500 in unsecured debt, however, and the fee for their service can be as much as 25% of your enrolled debt.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every debt consolidation loan list is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of personal loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

To determine which debt consolidation loans are the best for consumers with bad credit, CNBC Select analyzed more than 35 banks, credit unions and online lenders.

To narrow down our list, we focused on the following features:

• Credit score requirements: When possible, we considered the minimum FICO Score required for approval and whether a lender accepted alternative data, such as employment, education and savings.
• APR:  We considered lenders' maximum interest rates
• Loan terms: Lenders with broader repayment term options were given more weight.
• Loan amounts: Borrowing more than you need only increases the cost of borrowing. We considered the minimum and maximum loan amounts lenders make available.
• Fees: We considered lenders' origination fees and late fees for debt consolidation loans. None of the the lenders on our list charge a prepayment penalty.
• Application process: We evaluated whether lenders offered an easy-to-complete online application and same-day approval. 
• Funding speed: All of the lenders on our list make funds available as soon as the next business day.
• Direct pay: We noted when lenders offer to pay creditors directly or provided lower rates on debt consolidation loans for choosing direct payment.
• Customer support: Lenders with robust customer service hours, online chat and mobile apps were given more weight.

*Your LightStream loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 7.99% APR with a term of three years would result in 36 monthly payments of $313.32.

Fixed rates from 8.74% APR to 35.49% APR. APR reflects the 0.25% autopay interest rate discount and a 0.25% SoFi Plus interest rate discount. SoFi Platform personal loans are made either by SoFi Bank, N.A., or Cross River Bank, a New Jersey State Chartered Commercial Bank, operating from its Delaware branch, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 02/23/26 and are subject to change without notice. Not all rates and amounts are available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your creditworthiness, income, and other factors.

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